People analytics is
consistently one of the top 2 trends in HR today (the other being
candidate experience), but despite the fact that more than 70% of
CEOs identify human capital as a key source of competitive
advantage (IBM), only 5% invest in big data (TATA). And while 70%
of companies intend to increase automation, only one-third use
People Analytics to determine the impact on performance
outcomes!

That's why we're grateful
thatReed
Shaffner,Cornerstone
OnDemand'sVP
of Product Strategy, agreed to stop by theGeeks Geezers and Googlization
Showto talk
about the Future ofPeople
Analytics. In
another fast paced show, Reed shared best practices for getting
started, even if you're a small business, and how many
organizations are using analytics to solve business problems
associated with turnover, retention, pay equity, and skill
gaps.

People
Analytics- A new
venture for most HR departments, it refers to the information that
companies use to make decisions regarding their employees and
workforce. When the right questions and strategies are in place,
the information collected through people analytics can allow
companies to prepare for the future, move the right employees to
the right positions, and make overall better decisions for the
company as a whole.

On the hiring end,predictive analyticsthrough people analytics helps
recruiters see if applicants could be a good fit for the company.
Internally, these analytics are a great way to show which pay
structures are working for employee performance and if pay is equal
and fair across the board.

Reed gave us a great example on
the show of analytics at work when it comes to salaries and pay
structures.

WhenGooglecame out with theirpay equalityannouncement, they were able to
do so because of the analytics used to detect areas where they were
underpaying women or minorities. A similar case wasAmazon, who realized that the algorithm in their
system was causing inequality within pay scales. People analytics
is not only showing where areas of improvement are within these
giant tech companies, it’s also giving them a chance to accept
responsibility and change things within their company for the
better.

So, when it comes to
implementing people analytics in a way that works just as well as
the above example, where should you start?

Reed keeps it simple and to the
point with this question,

“Are you collecting the right
data in the first place?”

The answer is quite basic and
gets to the root of why you would want to use analytics in the
first place. “Pick one or two focused questions that you, as a
company, really want answered.”

Figuring out what these two
questions are will obviously differ for every organization
depending on the size and niche of the company. However, if you
want to gather quality data that is actually useful, you have to
start by answering this question first.

Once you start asking the right
questions, other benefits of people analytics start coming through
the pipeline- analytics that answer questions such as, “How
do I invest in the right people, get them to stay with the company,
and also predict roles that might open up in the
future?”

So, once you have the right
questions in place, and the right data coming through, how should
you go about analyzing it in a way that is useful for the company?
There are a few things that need to be in place for “successful
analytics” to happen.

Make
sure the right people have access to the data: Does everyone need
access? No, but you bet that the HR, Recruitment, and Front End
Management departments certainly should! Analytics is a partnership
between groups such as these, and keeping communication between
these departments open is a huge must when it comes to aggregating
the right data.

For
some companies, hiring a data scientist can be a great investment.
Reed warns companies to do their research and not hire just anyone
who says they have a magical fix for deciphering data. You want
someone tested, skilled, and able to go through the company’s data
to decipher the right information.

At the end of the day, people
data is business data. If you want to set your business up for
success, whether you’re a titan of industry or a small business
with less than 200 employees, people analytics is certainly key
when it comes to the future of work.

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About the Podcast

We live in interesting times. Our Geeks, Geezers and Googlization Podcast shares interviews with many of the most fascinating and successful industry thought leaders about managing the convergence of the wired, tired, and technology. Topics include tips on managing disruptive workforce trends and how companies can recruit faster, hire smarter, and retain employees longer. A favorite subject will be the Millennial Generation and managing the multi-generation workforce.
So what is Googlization and what does it have to do with managing people? Technology is being introduced at an accelerating pace. .It is disrupting and changing the way we work. The definition of work itself is evolving and the skills required to do them are more advanced. At the same time, the melting pot of 5 generations – Veterans, Baby Boomers., Generation X, Millennials, and Generation Z – poses an unprecedented challenge for managers.
And because Millennials will soon make up nearly 75% of the workforce, many of the episodes will address the best ways to attract and engage them. But other topics will include recruiting strategies and hiring trends as well as best practices for talent acquisition, leadership development, and employee retention.
Our goal with each episode is to provoke conversation and challenge the status quo. We won’t leave any stones unturned in our search for best practices of talent management. We hope you’ll accept our invitation to subscribe to our podcast, share the content, suggest future topics, and join the conversation.